Because the records-access provisions of FSMA became
effective on passage, FDA issued an interim final rule in February 2012 that expands the agency’s records access authority
well beyond what was accorded the agency prior to FSMA.
Previously, FDA was allowed only limited access to company

including costs related to reinspection. A reinspection is one or more
inspections conducted subsequent to an inspection that identified non-compliance materially related to a food safety requirement of the Act,
specifically to determine whether compliance has been achieved. Reinspection-related costs means all expenses, including administrative
expenses, incurred in connection with FDA’s arranging, conducting,
and evaluating the results of the reinspection, and assessing and collecting the reinspection fees, 21 U.S.C. § 379j- 31(a)( 2)(B). For a domestic facility, FDA will assess and collect fees for reinspection-related

records related to specific articles of food that the agency
reasonably believed to be adulterated and to present a threat
of serious adverse health consequences or death to humans
or animals. Now, under FSMA, FDA may demand access to
company records relating to any article of food the agency
believes is reasonably likely to be affected in a similar manner.
FDA is using this expanded records access authority to impose
ever more expansive record-keeping requirements as part of
every other proposed FSMA regulation. Indeed, several new
record-keeping requirements have already been unveiled in
both the Produce Safety and Preventive Controls proposed
rules, which are discussed more fully below.

Shifting the Regulatory Cost Burden to Industry — New Reinspection
and Recall Fees

In August 2012, FDA announced domestic and foreign facility reinspection, as well as recall and importer reinspection
fees, although FDA explicitly indicated that it would not issue
invoices for reinspections or recalls until a guidance document
is published, outlining a set of guidelines for small businesses.
Currently, there is no fee for an initial FDA inspection; however, FSMA authorizes FDA to assess and collect fees related
to certain domestic food facility, foreign food facility and importer reinspections. The fee for reinspection is to cover reinspection-related costs when an initial inspection has identified
certain food safety problems. The rates for reinspection are
$221 an hour per FDA field investigator if no foreign travel is
required, and $289 an hour if foreign travel is required. FDA
will not estimate the reinspection cost and simply states that
it would be determined on a case-by-case basis. FDA also has
the authority to assess and collect fees for food recall activities
associated with a recall order when a domestic food facility or
importer does not comply with such an order. Even though
FDA has indicated that it will not issue fee invoices until the
small business guidance is published, it has incorporated the
following language in numerous warning letters dating back to
April 2012, giving notice that it is only a matter of time before
FDA begins collecting fees as authorized by FSMA.

Section 743 of the Act ( 21 U.S.C. § 379j- 31) authorizes FDAto assess and collect fees to cover FDA’s costs for certain activities,costs from the responsible party for the domestic facility. The inspectionnoted in this letter identified non-compliance materially related to afood safety requirement of the Act. Accordingly, FDA may assess feesto cover any costs related to reinspection. 2

The Possible Hidden Costs — Facility Registration

In October 2012, FDA tackled another FSMA provision,
regarding registration, by issuing an updated guidance document entitled “Necessity of the Use of Food Product Categories in Food Facility Registrations and Updates to Food Product Categories.” Under this guidance, a registrant must submit
a registration to FDA containing information necessary to
notify the agency of the general food category of any food
manufactured, processed, packed or held at such facility. FDA
also now has the power to suspend a food facility registration,
which it recently did to Sunland Inc., based on the company’s
massive peanut butter recall. FSMA does not require registered facilities to pay a registration fee; however, in its budget
request for fiscal year 2013, FDA incorporated language for a
Food Establishment Registration User Fee of approximately
$500 per facility, which would generate approximately $220
million in fees. Because FDA does not have the authority to
collect this fee, Congress would need to approve the request
and grant FDA authority to collect the user fees.

FDA’s Interpretation of FSMA Unveiled

Unlike the FSMA provisions discussed above, other provisions are being rolled out more cautiously. On January 4,
2013, 2 years after FSMA was enacted, FDA proposed two
comprehensive rules aimed at preventing the contamination
of produce and processed foods. These proposed rules are
the core of FSMA and represent a monumental change in
the way FDA regulates food. Some of the significant changes
outlined in these two proposed rules include requirements
for companies to draft and comply with highly specific food
safety plans; to adhere to much more extensive record keeping and to implement new safety measures, including, for
example, requiring that farmworkers wash their hands, installing portable toilets in crop fields, as well as developing corrective action plans for handling outbreaks of foodborne illness.